Lead-lag effect  
 


Lead-lag effect


A lead-lag effect, especially in economics, describes the situation where one (leading) variable is correlated with the values of another (lagging) variable at later times.


For example, economists have Lead-lag effect found that in some circumstances there is a lead-lag effect between large-capitalization and small-capitalization stock-portfolio prices (Lo and MacKinlay, 1990).


(A loosely related concept is that of lead-lag compensators in control theory, but this is not generally referred to specifically as a "lead-lag effect.")





References



  • Andrew W. Lo and A. Craig MacKinlay, "When are contrarian profits due to stock market overreaction," Review of Financial Studies 3 (2), 175-205 (1990).

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The field of electronics is the study and use of systems that operate by controlling the flow of electrons or other electrically charged particles in devices such as thermionic valves and semiconductors. The design and construction of electronic circuits to solve practical problems is part of the fields of electronic engineering, and the hardware design side of computer engineering. The study of new semiconductor devices and their technology is sometimes considered as a branch of physics.

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